Global X Funds

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Global X Funds

Publié le : jeudi 21 juillet 2011
Lecture(s) : 52
Nombre de pages : 47
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PROSPECTUS SUPPLEMENT  Global X Funds  SUPPLEMENT DATED MAY 2, 2011 TO THE PROSPECTUS DATED MARCH 1, 2011
  The following information supplements the information found in the prospectus for the Global X Funds.   Effective May 3, 2011, the following fund will be available for purchase:
Global X Food ETF (EATX)
 
Effective May 4, 2011, the following fund will be available for purchase:
Global X Fishing Industry ETF (FISN)
 
 
 
 
 
 
 
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE 
PROSPECTUS SUPPLEMENT  GLOBAL X FUNDS  SUPPLEMENT DATED APRIL 8, 2011  TO THE PROSPECTUS DATED MARCH 1, 2011 (THE “PROSPECTUS”)  GLOBAL X WASTE MANAGEMENT ETF   The following information supplements the information found in, and should be read in conjunction with, the Prospectus.  Effective April 13, 2011, the Global X Waste Management ETF (WSTE) will be available for purchase.
 
 
 
 
 
 
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE 
 
    Global X Fishing Industry ETF()1*() NYSE Arca, Inc: FISN
Global X Food ETF(*) NYSE Arca, Inc: [ ]
Global X Shipping ETF(*) NYSE Arca, Inc: [ ]
Global X Waste Management ETF(*) NYSE Arca, Inc: [ ]
Prospectus March 1, 2011
(1) Formerly Global X Fishing ETF (*) Not open for investment The Securities and Exchange Commission (“SEC”) has not approved or disapproved these securities or passed upon the adequacy of this Prospectus. Any representation to the contrary is a criminal offense. Shares in aFund are not guaranteed or insured by the Federal Deposit Insurance Corporation (“FDIC”) or any other agency of the U.S. Government, nor are shares deposits or obligations of any bank. Such shares in a Fund involve investment risks, including the loss of principal.
TABLE OF CONTENTS 
FUND SUMMARIES .................................................................................................................... 1 ADDITIONAL INFORMATION ABOUT THE FUNDSSTRATEGIES AND RISKS.......... 22 PORTFOLIO HOLDINGS INFORMATION ............................................................................. 30 FUND MANAGEMENT............................................................................................................. 30 DISTRIBUTOR ........................................................................................................................... 32 BUYING AND SELLING FUND SHARES .............................................................................. 32 FREQUENT TRADING.............................................................................................................. 33 DISTRIBUTION AND SERVICE PLAN................................................................................... 33 DIVIDENDS AND DISTRIBUTIONS ....................................................................................... 34 TAXES ........................................................................................................................................ 34 DETERMINATION OF NET ASSET VALUE.......................................................................... 38 PREMIUM/DISCOUNT INFORMATION................................................................................. 39 INFORMATION REGARDING THE INDEXES AND THE INDEX PROVIDER ................. 39 OTHER SERVICE PROVIDERS ............................................................................................... 40 FINANCIAL HIGHLIGHTS....................................................................................................... 40 OTHER INFORMATION ........................................................................................................... 41  
FUND SUMMARIES Global X Fishing Industry ETF1 Ticker: FISN Exchange: NYSE Arca, Inc. INVESTMENT OBJECTIVE The Global X Fishing IndustryETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global FishingIndex (“Underlying Index”).  FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold shares (“Shares will also incur usual and customary”) of the Fund. Youbrokerage commission when buying and selling Shares.  Annual Fund Operating Expensesyou pay each year as a percentage of the(expenses that value of your investment): Management Fees:  0.69% Distribution and Service (12b -1) Fees: None Other Expenses :  0.00% Total Annual Fund Operating Expenses: 0.69%  Example:The following example is intended to help you compare the cost of investing in the Fund with the cost of investing in other funds. This example does not take into account customary brokerage commissions that you pay when purchasing or selling Shares of the Fund in the secondary market. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your Shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:  One Year Three Years $70 $221  Portfolio Turnover: Fund pays transaction costs, such as commissions, when it buys and The sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Shares are held in a taxable account. These                                                  1 Formerly Global X Fishing ETF 2 Expenses" are estimates for the current fiscal year. "Other
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costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance.investment operations as of the mostThe Fund had not yet commenced recent fiscal year end. Thus, no portfolio turnover rate is provided for the Fund PRINCIPAL INVESTMENT STRATEGIES The Fund will invest at least 80% of its total assets in the securities of the Underlying Index and in in ADRs and GDRs based on the securities in the Underlying Index.  The Underlying Index is designed to measure broad based equity market performance of global companies involved in the fishing industry, as defined by Structured Solutions AG. As of February 1, 2011, the Underlying Index had 20 constituents, 18 of which are foreign companies. The three largest stocks were Marine Harvest, Toyo Suisan Kaisha and Leroey Seafood. The Fund’s investment objective and Underlying Index be changed without shareholder may approval. Shareholders will be given 60 days’ prior notice of any such change.  The Underlying Index is sponsored by an organization (“Index Provider”) that is independent of the Fund and Global X Management Company LLC, the investment adviser for the Fund (“Adviser”). The Index Provider determines the relative weightings of the securities in the Underlying Index and publishes information regarding the market value of the Underlying Index. The Fund’s Index Provider is Structured Solutions AG.  The Adviser will usea “passive” or indexing approach to try to achieve the Fund’s investment objective. Unlike many investment companies, the Fund does not try to “beat” the Underlying Index and does not seek temporary defensive positions when markets decline or appear overvalued.  The Fund will use a replication strategy. A replication strategy is an indexing strategy that involves investing in the securities of the Underlying Index in approximately the same proportions as in the Underlying Index. However, the Fund may utilize a representative sampling strategy with respect to the Underlying Index when a replication strategy might be detrimental to shareholders, such as when there are practical difficulties or substantial costs involved in compiling a portfolio of equity securities to follow the Underlying Index, in instances in which a security in the Underlying Index becomes temporarily illiquid, unavailable or less liquid, or as a result of legal restrictions or limitations (such as tax diversification requirements) that apply to the Fund but not the Underlying Index. Correlation:which the values of different types of investments moveCorrelation is the extent to in tandem with one another in response to changing economic and market conditions. An index is a theoretical financial calculation, while the Fund is an actual investment portfolio. The performance of the Fund and the Underlying Index may vary somewhat due to transaction costs, asset valuations, foreign currency valuations, market impact, corporate actions (such as mergers and spin-offs), legal restrictions or limitations, illiquid or unavailable securities, and timing variances. The Adviser expects that, over time, the correlation between the Fund’s performance and that of the Underlying Index, before fees and expenses, will exceed 95%. A correlation percentage of
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100% would indicate perfect correlation. If the Fund uses a replication strategy, it can be expected to have greater correlation to the Underlying Index than if it uses a representative sampling strategy. Industry Concentration Policy:The Fund will concentrate its investments (i.e., holds 25% or more of its total assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated. SUMMARY OF PRINCIPAL RISKS As with any investment, you could lose all or part of your investment in the Fund, and the Fund's performance could trail that of other investments. The Fund is subject to the principal risks noted below, any of which may adversely affect the Fund's net asset value ("NAV"), trading price, yield, total return and ability to meet its investment objective, as well as other risks that are described in greater detail in theAdditional Information About the Fund’s Strategies and Riskssection of the Prospectus and in the Statement of Additional Information ("SAI"). Asset Class Risk:Securities in the Underlying Index or the Fund's portfolio may underperform in comparison to the general securities markets or other asset classes. Concentration Risk: the Fund's investments are concentrated in the fishing industry, Because the Fund will be susceptible to loss due to adverse occurrences affecting the fishing industry. Currency Risk: Becauseinvest in securities denominated in foreign currencies.The Fund may the Fund's NAV is determined in U.S. dollars, the Fund's NAV could decline if a foreign currency depreciates against the U.S. dollar. Custody Risk:developed markets are more likely to experience problems with the clearingLess and settling of trades. Emerging Market Risk:The Fund targets fishing companies globally and is expected to invest in securities in emerging market countries, currently including China, South Korea and Peru, a list that might be expanded as the index rebalances over time. The Fund’s investment in an emerging market country may be subject to a greater risk of loss than investments in developed markets. Foreign Security Risk:companies globally and is expected to invest inThe Fund targets fishing securities in foreign countries, currently including Great Britain, Norway, Spain, Australia, Japan, China, Hong Kong, South Korea and Peru, a list that might be expanded as the index rebalances over time. Investments in the securities of foreign issuers are subject to the risks associated with investing in those foreign markets, such as heightened risks of inflation or nationalization. You may lose money due to political, economic and geographic events affecting a foreign issuer or market. Equity Securities Risk:changes in value and their values mayEquity securities are subject to be more volatile than other asset classes.
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Geographic Risk: Fund targets fishing companies  Theglobally and is expected to invest in securities in geographies currently including Europe, Australia, Asia and South America, a list that might change as the index rebalances over time. A natural disaster could occur in a geographic region in which the Fund invests. Issuer Risk: Fund performance depends on the performance of individual companies in which the Fund invests. Changes to the financial condition of any of those companies may cause the value of their securities to decline. Management Risk: The Fund is subject to the risk that the Adviser’s investment management strategy may not produce the intended results. Market Risk:could decline over short periods due to short-term market Fund's NAV  The movements and over longer periods during market downturns. Market Trading Risks:The Fund faces numerous market trading risks, including the potential lack of an active market for Shares, losses from trading in secondary markets, and disruption in the creation/redemption process of the Fund. Any of these factors may lead to the Shares trading at a premium or discount to NAV. Non-Diversification Risk: The Fund may invest a large percentage of its assets in securities issued by or representing a small number of issuers. As a result, the Fund’s performance may depend on the performance of a small number of issuers. Passive Investment Risk: The Fund is not actively managed and the Adviser does not attempt to take defensive positions in declining markets. Risk Related to Investing in the Fishing Industry:Securities in the Fund’s portfolio may be significantly subject to international treaties governing territorial and international waters and rights to marine resources; governmental policies, such as taxes, tariffs, duties, subsidies and import and export restrictions on fish and fish products; the possibility of depleted fish stock as a result of overfishing; and a broad range of environmental laws and regulations. Securities Lending Riskinvolves the risk that the Fund loses money because: Securities lending the borrower fails to return the securities in a timely manner or at all. The Fund could also lose money in the event of a decline in the value of the collateral provided for loaned securities or of investments made with cash collateral. These events could also trigger adverse tax consequences for the Fund. As securities on loan may not be voted by the Fund, there is a risk that the Fund may not be able to recall the securities in sufficient time to vote on material proxy matters. Securities Market Risk:Because certain securities markets in the countries in which the Fund may invest are small in size, underdeveloped and are less regulated and less correlated to global economic cycles than those markets located in more developed countries, the securities markets in such countries are subject to greater risks associated with market volatility, lower market capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations and uncertainty regarding the existence of trading markets.
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Small- and Mid-Capitalization Companies Risk:The Fund may invest a significant percentage of its assets in small- or medium-capitalization companies, which are typically subject to lower trading volume, less liquidity, greater price volatility and less analyst coverage than larger more established companies. Tracking Error Risk:the Fund may diverge from that of the UnderlyingThe performance of Index. Valuation Risk:the securities in the Fund's portfolio may change on days when value of  The shareholders will not be able to purchase or sell the Fund's Shares. PERFORMANCE INFORMATION The Fund does not have a full calendar year of performance. Thus, no bar chart or Average Annual Total Returns table is included for the Fund.   FUND MANAGEMENT Investment Adviser:Global X Management Company LLC. Portfolio Managers:The professionals primarily responsible for the day-to-day management of the Fund are Bruno del Ama and Jose C. Gonzalez(“Portfolio Managers”). Mr. del Ama, who is the Chief Executive Officer of the Adviser, and Mr. Gonzalez, who is the Chief Operating Officer of the Adviser, have been Portfolio Managers of the Fund since inception. OTHER IMPORTANT INFORMATION REGARDING FUND SHARES  For important information about purchase and sale of Fund Shares, tax information and financial intermediary compensation, please turn to the sections of this Prospectus entitled “Purchase and Sale of Fund Shares,” “Tax Information,” and “Payments to Broker-Dealers and Other Financial Intermediaries” on page21 of the Prospectus.   
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Global X Food ETF Ticker: [ ] Exchange: NYSE Arca, Inc. INVESTMENT OBJECTIVE The Global X Foodto provide investment results that correETF (“Fund”) seeks spond generally to the price and yield performance, before fees and expenses, of the Solactive Global Food Index (“Underlying Index”).  FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold shares (“Shares”) ofusual and customary brokerage commission when will also incur  Youthe Fund. buying and selling Shares.  Annual Fund Operating Expenses(expenses that you pay each year as a percentage of the value of your investment): Management Fees:  0.65% Distribution and Service (12b -1) Fees: None Other Expenses:  0.00% Total Annual Fund Operating Expenses: 0.65%  Example:The following example is intended to help you compare the cost of investing in the Fund with the cost of investing in other funds. This example does not take into account customary brokerage commissions that you pay when purchasing or selling Shares of the Fund in the secondary market. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your Shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:  One Year Three Years $66 $208  Portfolio Turnover: The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance.not yet commenced investment operations as of the mostThe Fund had recent fiscal year end. Thus, no portfolio turnover rate is provided for the Fund                                                  1 Expenses" are estimates for the current fiscal year. "Other
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PRINCIPAL INVESTMENT STRATEGIES The Fund will invest at least 80% of its total assets in the securities of the Underlying Index and in in ADRs and GDRs based on the securities in the Underlying Index.  The Underlying Index is designed to measure broad based equity market performance of global companies involved in the food industry, as defined by Structured Solutions AG. As of February 1, 2011 the Underlying Index had 40 constituents, 19 of which are foreign companies. The three largest stocks were Nestle, Kraft Foods, and Danone. The Fund’s investment objective and Underlying Index may be changed without shareholder approval. Shareholders will be given 60 days’ prior notice of any such change.  The Underlying Index is sponsored by an organization (“Index Provider”) that is independent of the Fund and Global X Management Company LLC, the investment adviser for the Fund (“Adviser”). The Index Provider determines the relative weightings of the securities in the Underlying Index and publishes information regarding the market value of the Underlying Index. The Fund’s Index Provider is Structured Solutions AG.  The Adviser will usea “passive” or indexing approach to try to achieve the Fund’s investment objective. Unlike many investment companies, the Fund does not try to “beat” the Underlying  Index and does not seek temporary defensive positions when markets decline or appear overvalued.  The Fund will use a replication strategy. A replication strategy is an indexing strategy that involves investing in the securities of the Underlying Index in approximately the same proportions as in the Underlying Index. However, the Fund may utilize a representative sampling strategy with respect to the Underlying Index when a replication strategy might be detrimental to shareholders, such as when there are practical difficulties or substantial costs involved in compiling a portfolio of equity securities to follow the Underlying Index, in instances in which a security in the Underlying Index becomes temporarily illiquid, unavailable or less liquid, or as a result of legal restrictions or limitations (such as tax diversification requirements) that apply to the Fund but not the Underlying Index. Correlation:which the values of different types of investments moveCorrelation is the extent to in tandem with one another in response to changing economic and market conditions. An index is a theoretical financial calculation, while the Fund is an actual investment portfolio. The performance of the Fund and the Underlying Index may vary somewhat due to transaction costs, asset valuations, foreign currency valuations, market impact, corporate actions (such as mergers and spin-offs), legal restrictions or limitations, illiquid or unavailable securities, and timing variances. The Adviser expects that, over time, the correlation between the Fund’s performance and that of the Underlying Index, before fees and expenses, will exceed 95%. A correlation percentage of 100% would indicate perfect correlation. If the Fund uses a replication strategy, it can be expected to have greater correlation to the Underlying Index than if it uses a representative sampling strategy.
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